On February 7, 2012, Kershaw and the Dodgers agreed on a two-year, $19 million contract. The contract was the second highest for a player in his first year of arbitration (after Tim Lincecum's $23 million 2-year contract in 2010).
Kershaw was the Dodgers' Opening Day starter for the second year in a row, where he pitched three innings of shutout ball against the San Diego Padres at Petco Park before being removed from the game due to flu-like symptoms. On April 27, he was able to last through eight innings for his second win of the season against the Washington Nationals. The win was also his 12th straight home win, tying him with Ed Roebuck (June 1960 – August 1962) and Orel Hershiser (September 1984 – October 1985) for the longest home winning streak since the Dodgers moved to Los Angeles. Kershaw won the National League's Player of the Week Award for the week of May 14–20 after he made two starts during that week and pitched 16 scoreless innings, including his fourth career shutout. Kershaw was selected to appear in the 2012 Major League Baseball All-Star Game, the second straight year he made the team.
Kershaw finished 2012 with a 14–9 record, a 2.53 ERA (leading the league), 229 strikeouts, and 227⁄3 innings pitched, coming second in both categories. He became the first pitcher to lead the league in ERA in consecutive seasons since Arizona's Randy Johnson in 2001–02. This was also marked his fourth year in a row with a sub-3.00 ERA, making him the first to do this since Randy Johnson from 1999 to 2002. He finished second for the NL Cy Young behind R.A. Dickey, receiving two first place votes.
He and his wife returned to Zambia in 2012. Kershaw donated $100 for every strikeout in the 2012 season to Kershaw's Challenge, calling that season's incarnation of the project "Strike Out To Serve." Seventy percent of the money raised in 2012 went to Arise Africa, with 10 percent each going to the Peacock Foundation in Los Angeles, Mercy Street in Dallas, and I Am Second. In 2014, Kershaw continued to support the children of Zambia, in partnership with CURE International, raising funds to pay for 170 children's surgeries and new medical equipment for CURE hospital in Lusaka. Kershaw continued his partnership with CURE International in 2015, setting a goal of funding 100 surgeries for CURE's hospital in the Dominican Republic.
Kershaw and his wife, Ellen, co-authored a book, Arise: Live Out Your Faith and Dreams on Whatever Field You Find Yourself, about their Christian faith and humanitarian efforts. It was released on January 10, 2012, by Regal Press.